October 30, 2009 Oakland, CA-- According to reports received by BBB offices in several states. The scammers accuse the victim of defaulting on a loan and claim they are about to be sued. The victims are then given the chance to prevent this by wiring money or providing bank account information to the debt collector before the matter goes to court. In many cases, victims are subject to dozens of nasty, abusive phone calls in a matter of hours. The con artists claim to be from companies called “First Cash International,” the "Financial Accountability Association" or the "Federal Legislation of Unsecured Loans," BBB officials say.
More disturbing is that the bogus collectors have the victims' Social Security numbers, home addresses, information about employers, some credit references and even old bank account numbers. The victims are asked to “verify” other private information that could make them subject to identity theft.
"Even though they have sensitive information, they are not real debt collectors," said BBB President Gene O'Neil. "We have to imagine that this is the result of some serious data breach. We don’t know the source of this breach as of yet, but our concern dictates that consumers be alerted to this immediately”.
The Better Business Bureau has reported the scam to the Federal Bureau of Investigation and the Federal Trade Commission. However consumers remain at risk.
If you get one of these phone calls DO NOT provide any verifying information. Either hang up or demand that the debt collector send verification of the debt in writing. Then:
* If the caller has your social security number, your risk of becoming a victim of identity theft is increased It is recommended that you put a fraud alert on your credit file with all of the major credit bureaus, Experian, Equifax and Transunion.
* You will automatically get a copy of your credit report when you issue the fraud alert. Be sure to read it carefully and identify any item that's not yours.
* If there are numerous new accounts or "hard" inquiries-those are where you have supposedly requested credit-file a police report. (Soft inquiries are when a creditor has requested general information about you to provide a pre-approved offer of credit. These are quite common.)
* Also call your BBB at 866-411-2221 if you believe a debt collector is trying to scam you.
Meanwhile, if you have gotten one of these harassing phone calls, please share the details and how you handled it for the benefit of other potential victims.
According to complaints from BBBs, phone numbers the scammers are using include: 949-468-5107, 415-200-0274, 213-784-5745, 916-236-4574 and many more.
For More Information
To learn more about debt collection and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government’s portal to financial education.
To learn more about your consumer rights, visit the Federal Trade Commission's website at www.ftc.gov or click on the following link: http://ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
About BBB
The BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB Accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. The BBB provides objective advice, free BBB Reliability ReportsTM on businesses and BBB Wise Giving ReportsTM on charities, and educational information on topics affecting marketplace trust. To further promote trust, your BBB also offers dispute resolution services for consumers and businesses. The first BBB was founded in 1912. Today, 125 BBBs serve communities across the U.S. and Canada. Please visit www.goldengate.bbb.org for more information.
